Chicago’s Competitive
Advantages for BusinessNorth America’s Global Corporate Hub
March 2015
ICNC Presentation
DRIVING SUCCESSIN NORTH AMERICA’S GLOBAL BUSINESS CENTER
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Mission
• Drive economic growth & jobs
• Raise Chicago’s position as a
premier global business destination
• Advance a business-friendly
environment
• Attract world-class talent
Supported by leading-edge:
• Market research
& economic analysis
• Marketing
& public relations
WBC Board of Directors
33/11/2015 Master
Mayor Rahm Emanuel, Chairman City of Chicago
Michael Sacks, Vice Chairman CEO, GCM Grosvenor
Henry Crownand Company
Satter Investments
World Business Chicago is Your Partner in
Corporate Site Selection & Relocations
• We help companies navigate the relocation and expansion process, working in partnership with real estate & site selection teams
• A public/private partnership, WBC serves as a conduit to the business and civic communities
• By uniting all the necessary parties, we demonstrate that Chicago is the ultimate global business destination
• WBC assures that companies get the services and guidance needed to make informed location decisions, your Chicago liaison from start-to-finish…
– WBC provides presentation/pitch materials outlining
Chicago’s Competitive Advantages for Business, customized for each company’s industry/talent needs
– Advise on incentives eligibility & liaison to government
agencies across all levels: City, County, and State
– Implement the Plan for Economic Growth and Jobs and
oversee Chicago’s 28 Sister City relationships
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Largest Centralized Metro in the U.S.Abundant Talent Pipeline in One of the World’s Largest Economies
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Chicago is the heart of a major
metropolitan area comprised of:
• 9.5 million residents, a growth of
4% (+380,000 people) since 2000
• $549 billion annual gross
regional product
• 4.4 million employees
The central city/Chicago is home to
2.7 million residents and 1.4 million
employees, a concentration of whom are
young and college educated – a major
selling point for companies looking to
attract the best and brightest in the region
City of Chicago
2,718,782
Total Chicago MSA Population
9,537,289
Source: Moody’s Analytics (2013), Illinois Department of Employment Security (2013), Census (2000; Jul-2013 population estimates)
3/11/2015 Master
Why Chicago?
• Chicago has one of the world’s largest and most diversified economies with $549 billion in annual GRP, and a tremendous talent pipeline including150 higher ed. institutions graduating
145,000 people every year
• Home to more than 400 major corporate headquarters including 30 Fortune 500 HQs, 300 corporate R&D facilities, two of the top universities in the world, and ranked
#2 in North America as International HQs Destination
• Chicago is a global transportation hub, the #1 best-connected airport in the U.S., with non-stop flights to 200+ worldwide destinations carrying 87 million passengers annually; 546
million public transit passengers; and $188 billion of imports and exports
• Chicago offers a phenomenal quality of life with hundreds of world-renowned cultural institutions in an architecturally stunning, creative, vibrant and truly global city
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A Business-Friendly City
Mayor Rahm Emanuel is focused on making
Chicago the most business-friendly city
in the nation
•Announced more than 29,000 new jobs from 130 companies –
including 31 headquarters – since the beginning of mid-2011
•Streamlining business creation, licensing and permitting processes
•Over $400 million in recurring spending cuts to get the City’s budget
in order without any increase in broad based taxes
•Better transportation, logistics, infrastructure & educational systems to
maximize Chicago’s central location.
• Enhance City Colleges system to provide better job training
• Install 25 miles of protected bicycle lanes to encourage
riding to work
•New levels of open data provide for an efficient, transparent
government that makes Chicago a great place to live, work, and
grow a business
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Chicago is among the world’s 10 most competitive cities for business.
- The Economist Intelligence Unit
3/11/2015 Master
A City With A Strategic Plan to Grow Chicago’s
Economy and Jobs: 10 Transformative Strategies
1. Drive efforts to grow as an advanced manufacturing hub
2. Focused efforts to attract headquarters and leadership in business services
3. Increase competitiveness as the nations leading transportation and logistics hub
4. Make Chicago a premier destination for tourism and entertainment
5. Expand Chicago’s exports base
6. Create demand-driven and targeted workforce development
7. Support innovation and entrepreneurship in emerging and mature sectors
8. Invest to create next-generation infrastructure
9. Develop and deploy assets in neighborhoods to align with regional economic growth
10. Create a business environment in which companies can flourish
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An Economic Powerhouse
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Global Economic Powerhouse#1 Metro for New & Expanding Companies
– Site Selection magazine, 2014
Among the top 10 Cities of Opportunity
– PwC, 2014
Among the top 10 Global Cities of today
– A.T. Kearney, 2014
Top 10 Economic Development Group
– Site Selection magazine, 2014
Among the top 10 global business hotspots of 2025
– The Economist Intelligence Unit, 2013
4th most economically powerful city in the world
– Global Economic Power Index, R. Florida and Martin Prosperity Institute, 2011
2nd most powerful global city in the United States
– The Atlantic compilation of global city rankings from The Economist, A.T. Kearney,
McKinsey, Global Financial Centres Index, 2012
4th best foreign direct investment strategy among 422 major North/South
American Cities of the Future, surpassing all US cities
– fDi Intelligence, 2013/1410
“America’s Best
Downtown…”
- Forbes, 2011
$549B Economy Rivals Nations
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3JAPAN
$4,920
23CHICAGO
$549
Ranking$ Gross Product (U.S. Billions, 2013)
2CHINA
$9,240
9RUSSIA
$2,097
20SWITZERLAND
$685
13SPAIN
$1,393
8ITALY
$2,149
6U.K.
$2,678
22SWEDEN
$580
7BRAZIL
$2,246
5FRANCE
$2,806
11CANADA
$1,827
10INDIA
$1,877
1UNITED STATES
$16,768
15MEXICO
$1,261
12AUSTRALIA
$1,560
14KOREA
$1,305
17NETHERLANDS
$854
24POLAND
$526
16INDONESIA
$868
4GERMANY
$3,730
25BELGIUM
$525
19SAUDI ARABIA
$748
18TURKEY
$822
21ARGENTINA
$610
Source: World Bank (2013), Moody’s Analytics (2013), WBC (1/27/15)
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Chicago’s Key Industries
Ranked Top 5 among 350+ metro areas
nationwide for GRP/Output in…
Business & Professional Services
766,400 employees; $86 billion GRP
Financial Services
289,200 employees; $127 billion GRP
Manufacturing
409,900 employees; $73 billion GRP
Transportation & Warehousing
188,900 employees; $20 billion GRP
Health Services
539,400 employees; $38 billion GRP
12Source: Moody’s Analytics (2013), WBC (8/8/14)
Innovation Hub
• 275 digital startups launched every year on average for
the last three years
• $3+ billion in venture capital invested in Chicago area
startups over the past 5 years
• 1871 is one of the top 10 business Incubators in the world
• 1,700 patents issued by inventors in the city of Chicago
last year
• 300 corporate R&D facilities
• 96 Nobel Prize winners
• Startup successes include Careerbuilder, Groupon,
GrubHub, Morningstar, Orbitz
• $1.67 billion in annual R&D expenditures at Chicago
colleges and universities
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“Chicago’s startup
scene is on fire”
- Forbes, 2013
Source: Built In Chicago (2014), Dow Jones VentureSource (2014), UBI Index (2014), U.S. Patent and Trademark Office (2014), MNI (2013), National Science Foundation (2014), WBC (4/4/14)
Global ConnectivityChicago Provides Best Access to the World
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Best-Connected Airport in U.S.
Only “dual-hub” airport system in North America –
handling 1,400+ daily departures and over 90
million passengers annually
Non-stop service to more
than 200 domestic and
international destinations
Source: Chicago Department of Aviation (2014), WBC (4/4/14); MIT International Center for Air Transportation (2013) 15
Easy Coast-to-Coast Access
Within a 4-hour flight of
all major North American
destinations – 142 non-
stop & direct domestic
routes
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An International
Business Destination
• Top 10 Global Destination City
• Home to 1,800 foreign-based
companies— $100 billion in foreign
direct investment
• Robust international business
resources including:
• More than 80 Consulates/Consuls General
• 100+ international/ethnic Chambers of
Commerce and international trade-based
organizations
• 28 international sister cities
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Source: IBM Global Business Services (2013), D&B/NETS (2013), U.S. Department of Commerce Bureau of Economic Analysis, Brookings Institution (2014), WBC (10/2/14)
3/11/2015 Master
Major International Companies
Total Foreign Direct Investment employment is 223,500 (equals 5% of metro)
OFII: 12.2% of US jobs, 14% of IL jobs ‘supported’ by FDI
GermanyJapan UK NetherlandsCanada France Switzerland
FOREIGN-OWNED BUSINESS PRESENCE IN THE CHICAGO AREA :
COUNTRY COMPANIES
Japan 350
U.K. 300
Germany 250
Canada 200
France 100
Switzerland 100
Italy 75
Netherlands 60
Italy
Source: US Commerce Department Bureau of Economic Analysis; Organization for International Investment; Brookings Institution
2013 Illinois Exports to UK: $1.58 billion; Imports, $1.84 billion
$0 $10 $20 $30 $40
Brazil
Australia
UK
Switzerland
South Korea
Germany
Japan
Mexico
China
Canada
Exports & Imports - $US (Billions); 55% of Canadian trade is in oil and related products
Imports Exports
International Trade Partners
State of Illinois – 2013 Trade
Source: USA Trade, U.S. Census Bureau
A City of Headquarters
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Corporate Headquarters Hub
• More than 400 major
corporate headquarters
(with at least 1,000+ employees)
• 29 S&P 500 companies
• 30 Fortune 500 HQs
including 8 in the City
• 16 FT Global 500 HQs
Source: Hoover’s (2013), Fortune (2013), Financial Times (2013), WBC (12/19/13) 21
Manufacturing Headquarters Hub
• More than 200 major
manufacturing headquarters (with at least 1,000+ employees)
• 413,800 metro manufacturing
employees
• $68 billion metro
manufacturing GRP
22Source: Hoover’s (2014)
Chicago’s Brand New $320 million Digital
Manufacturing and Design Innovation Institute
President Obama announced $70 million grant from U.S. Dept. of Defense
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Announced in February 2014, the DMDII will be
HQ’d in Chicago and connected to a network
of manufacturing research sites across the United
States.
As a pillar of President Obama’s investment in
U.S. Manufacturing, the DMDII will be the nation’s
flagship research institute in digital
manufacturing and design innovation and a
world-class, first-of-its kind manufacturing hub
with the capabilities, innovation, and
collaboration necessary to transform American
manufacturing.
The hub will apply cutting edge mobile, cloud,
and high-performance computing technologies
to the manufacturing challenges of today’s
manufacturing industry.
The DMDII site: “Goose Island” industrial corridor, in close proximity to Chicago’s central business district .
Surging City CenterChicago’s Vibrant Central Business District
• Added more residents than any other
urban core in America, 2000-2010
• Added jobs at nearly twice the
national rate in 2013
• +22% increase in commercial lease
activity downtown, and the Central
Loop outperformed all other Chicago
submarkets in terms of net absorption
and reduction in direct vacancy at
the end of 2012
• 217 major business expansions in the
City of Chicago in 2013 comprising well over 4.6 million square feet of
added space, 21,000 new jobs and
$3.0 billion in investment
“It really comes down to
where talent is looking to be”
– Logan LaHive, CEO, Belly Inc.
Source: U.S. Census Bureau, MBRE, World Business Chicago 24
Strong Corporate Migration Trend to Chicago Why? 1) Gain Centralized Access to Talent in the City’s CBD, and
2) Join Downtown Chicago’s Vibrant Business Community,
the Economic Engine for the Region
ADM HQs – 100 jobs
Allscripts - 300 jobs
Coeur Mining HQs - 120 jobs
Coyote Logistics HQs - 1000 jobs
GE Capital – 1000 jobs
GE Transportation HQs – 150 jobs
Google/Motorola Mobility - 2200
jobs
Grainger Ecommerce - 300 jobs
Hillshire Brands/Sara Lee HQs - 500
jobs
JMC Steel HQs – 100 jobs
Lagunitas – 100 jobs
Medline IT Division – 50 jobs
Merge Healthcare – 200 jobs
McGladrey HQs – 300 jobs
Motorola Solutions N.A. HQs - 200
jobs
Nokia / NAVTEQ - 1200 jobs
Sagence HQs - 245 jobs
SalesForce - 600 jobs
Silliker N.A. HQs - 100 jobs
ThyssenKrupp N.A. HQs - 100 jobs
United Continental Airlines - 3500
jobs
University HealthSystem Consortium
Veolia N.A. HQs
Walgreens Ecommerce - 600 jobs
“I see it as a way to…
attract and retain the
best and the brightest
in this space”- Sona Chawla, Walgreens’President E-Commerce upon relocating into Chicago Loop
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A Few Recent Company Wins
for Chicago
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4.6%
6.0%
6.6%
6.9%
7.1%
7.1%
7.7%
9.4%
Illinois
Minnesota
Georgia
Texas
New York
Missouri
California
Washington
Overall Effective Business Tax Rate
Cost of Doing BusinessChicago is an Affordable Global City for Companies
Includes income taxes, franchise taxes and sales and use taxes on business input purchases, gross
receipts taxes and property taxes. Illinois’ rate includes a 2.5% personal property replacement
tax. Texas' income tax is technically not an income tax but based on adjusted income.
Only 3 Cities in the United
States Are Consistently Ranked
“Global Cities” based on the
Global Depth and Breadth of
our Economies: Chicago, NYC
and Los Angeles…
Of the 3 U.S. Global Cities,
Chicago provides
the Lowest Cost &
Best Value.
Source: Advisory Commission on Intergovernmental Relations and CCH, a Wolters Kluwer business (2011), WBC (10/3/2013) 27
Office Market
INTERNATIONAL CITY OFFICE COSTS1
Hong Kong (CBD) $2792
London (City) $2572
Beijing $2042
Tokyo (Central) $1665
Paris $1314
New York (Midtown) $1299
Shanghai (Pudong) $1286
San Francisco $1098
Washington, D.C. (CBD) $931
Los Angeles (Suburban) $851
Guangzhou $806
Toronto (CBD) $665
1 Total occupation cost per annum (USD/M2/YEAR)Source: CB Richard Ellis, WBC, 2013-14
CHICAGO (CBD) $530
Easy to Join Chicago’s Tightly Knit
and Supportive Business Community
THE
CIVIC
COMMITTEE
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Chicago’s Tremendous Talent Pipeline
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Lake Porter
Jasper
Newton
Lake
Kane
Kendall
Grundy
Will
McHenryLake Michigan
Wisconsin
India
na
Kenosha
DuPageDeKalb
Cook
A Central Chicago Location Brings
Talent Within Reach
• Nearly 600,000 people flow to
downtown Chicago each business
day, the center of a “hub and spoke”
public transportation system and the
economic engine for the region –
more than half taking mass transit
• 850,000+ college graduates with a
bachelor’s or higher live within one
mile of a CTA or Metra train stop
• 3.1+ million working-age adults are
within a 50-minute commute of
downtown Chicago – more than
1 million are age 22 to 34
≤ 20 min
≤ 50 min
≤ 70 min
≤ 90 min
Source: U.S. Census Bureau OnTheMap (2011), U.S. Census Bureau Decennial Census (2010), WBC (10/31/13) 31
• Home to Kellogg School of Management at
Northwestern University and Booth School of
Business at University of Chicago, two of the top
business schools in the world
• Chicago Loop is “the largest college town in
Illinois,” with more than 65,000 students
• More than 145,000 college degrees conferred
every year by the nearly 150 Chicago area
colleges and universities, including 25,000
bachelor’s degrees, 18,000 masters degrees,
and 4,000 doctoral degrees in the city alone
Tremendous Talent PipelineAccess to The Country’s Brightest Minds
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University of Chicago’s campus, one of
150+ higher ed. institutions in the metro
Chicago’s Extensive Public Transportation Network
At the Heart of a Hub & Spoke Metro-wide Public Transit System, a
Chicago Location Provides Companies with the Best Access to Talent
Access to over 4 million employeessupported by 3,700-square-mile public
transit network
850,000+ college graduates with a bachelor’s or higher live within one mile
of a CTA or Metra train stop
CTA intercity bus + rail system• $2.25 / one-way ride
• Connects to O’Hare and Midway
airports
• 546 million passengers annually
Metra commuter rail network• $6 / one-way ride
• Radiates up to 70 miles (110 km)
• 81 million passengers annually
Source: U.S. Census Bureau, World Business Chicago, Chicago Transit Authority, Metra
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CTA / Chicago “Loop” Metra / Suburban Connections
Public Transportation Maps
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Unparalleled Quality of Life
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Renowned Culture & Amenities
• Home to world-renowned Chicago Symphony
Orchestra, Joffrey Ballet, Art Institute of Chicago,
Alinea restaurant, and Lincoln Park
• 150+ theater companies in the city alone
– Chicago is the only city with 5 Tony Award-
winning regional theater companies including
Steppenwolf
• 35+ museums including Field Museum, Museum of
Science and Industry
• Millennium Park – a 25-acre park in the heart of
downtown
• World-class sports teams - Bears, Blackhawks, Bulls,
Cubs, White Sox & more
• Hundreds of venues with 1,000+ performances per
summer week
Top 10 City for Global Travel, 2014
(the only U.S. city) - Lonely Planet
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Cost of Living = Best Value City
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95
96
96
99
100
108
115
121
130
140
140
162
220
0 50 100 150 200 250
Atlanta
Detroit
Dallas
Houston
U.S. Average
Miami
Chicago
Philadelphia
Los Angeles
Boston
Washington, D.C.
San Francisco
New York (Manhattan)
Source: C2ER Cost of Living Index (2013), WBC (6/4/14)
Why Business Leaders Choose Chicago
“We’re thrilled to bring our employees to downtown
Chicago and infuse our company with the vibrant
energy of the city”
– Dennis Woodside, CEO, Motorola Mobility
“Every day since we made the decision to locate in
Chicago, our experiences have only added to the
feeling this was a very good decision.”
– John D. Warner, SVP-CAO, Boeing Company
“The Chicago area’s incredibly talented workforce
is a perfect match for our fast paced and
innovative culture.”
– George Hu, COO, salesforce.com
"It's the crossroads of the country. There's only one
Chicago."
– Tony Magee, CEO, Lagunitas Brewing
“The kind of support services you need to effectively
run a corporate headquarters are really
appropriately here.”
– Louis Schorsch, CEO of ArcelorMittal-U.S.
“As the premiere digital map company in the
world, NAVTEQ knows the importance of
location! We consider Chicago to be uniquely
located to serve the world.”
– Judson Green, former CEO of NAVTEQ/Nokia
"It's a textbook example of what can happen when
government and the private sector work together.“
– Glenn Tilton, former CEO of United
“It really comes down to where talent is looking to
be”
– Logan LaHive, CEO, Belly Inc.
“I see it as a way to… attract and retain the best
and the brightest in this space”
– Sona Chawla, President, Walgreens E-
Commerce
“It makes sense to grow here. There is a wealth of
financial services and banking talent available to us
in Chicago at very good value. It’s a great place to
work and live. It’s a pro-business city.”
– Daniel Henson, CEO, GE Capital
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WorldBusinessChicago.com
@WorldBizChicago
Facebook.com/WorldBusinessChicago
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